Stocks & Equities

Cash-Flow Zombie Netflix Extracts Another $2 Billion from Befuddled Investors

Having burned cash for 22 years and counting.

“Don’t get me wrong: there is still lots of money out there chasing these companies,” I said in my podcast on Sunday, naming Netflix as one of the perennially cash-flow negative companies – the “cash-burn machines” – that have to borrow huge amounts of money every year to make ends meet, and that still find eager investors to lend them this money. I said this, not knowing what Monday would bring. And sure enough, Monday brought an announcement by Netflix that it would borrow another $2 billion via another bond sale – its second this year, after having already borrowed $2.2 billion in April.

These proposed senior unsecured notes, which will mature in 2030, will be sold in US dollars and euros to institutional investors, not the public. In other words, these bonds go into pension funds, insurance funds, bond funds, junk bond funds, and the like — and you may own a slice of them whether you want to or not…CLICK for complete article

Cramer: Is FAAMG The New FAANG?

Netflix Inc inclusion in the prestigious “FAANG” acronym should come to an end, with its replacement being the “far less episodic” Microsoft Corporation CNBC’s Jim Cramer said during Friday’s “Mad Money.”

Netflix reported a miss on “almost every key metric” in its recent third-quarter report, Cramer said.

Among the more concerning readouts: Netflix’s subscriber growth, which fell short of expectations for the second straight quarter, the CNBC host said.

Netflix’s stock has “lost its mojo,” and with the stock trading near $275 per share, there is more downside to be seen, he said.

Why It’s Important

Among the other stocks in the FAANG group, Cramer said social media company Facebook, Inc. is “very undervalued” and belongs in the group of elite stocks so long as the U.S. government doesn’t dictate that the company has to spin off Instagram or WhatsApp….CLICK for complete article

Live Post-Show Webinar – 10 Essential Principles for Trading the Stock Market

Live with Tyler Bollhorn on Saturday October 19th at 10:15am Pacific time

Trading stocks is simple, but not easy. During this one hour free webinar, Stockscores.com founder Tyler Bollhorn will take you through 10 simple principles to guide your stock trading. Whether you are a short term active trader or a long term investor in stocks, these principles will help you achieve better returns and avoid painful losses.

CLICK HERE to register and reserve your space

Is The Pot Stock Boom Over Already?

With Mexico on the brink of legalizing recreational marijuana, you would think it would be great news for the cannabis industry, but stocks are getting crushed, and some of the biggest industry darlings are even flirting with penny stock status at this point.

This industry is forecast for growth that could generate some $200 billion in annual sales by 2030. So what gives?

The general consensus is that cannabis–at large–is a great long-term bet, but….CLICK for complete article

Leibovit Newsletter – Special Offer

Mark Leibovit and his proprietary volume reversal technical analysis was back on top of the Timer’s Digest rankings again this past summer, no surprise for someone with track record of trading success that goes back more than 30 years. Mark is Michael’s guest on Saturday’s show and has very generously offered MoneyTalks listeners a discount code for 50% ANY of his subscriptions. Use code – woc2019vrnews. CLICK HERE for more information and to order.

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Is There Any Reason To Be Bullish About Netflix?

Netflix stock is down 30 percent from its high, and earnings are about to come out. Whether this is a buy or not comes down to what analysts think of a no-holds-barred streaming war with some fierce competition.

Netflix’ FAANG days are rather lackluster of late. It’s been outshined by Facebook, Apple, Amazon and Google for a year now.

Netflix, though, has been the dimmest star in this universe.

In mid-July, it failed to impress with Q2 earnings. The numbers were worse than expected and the stock moved into definitive bear territory on data showing that a short-fall it new subscriber estimates, and on the premise that growth outlook is shrinking amid a sea of competition….CLICK for complete article